FX.co ★ Australia Q4 Corporate Profits Grow the Most in 3 Years

Corporate profits in Australia rose 5.8% quarter-on-quarter in Q4 2025, surpassing market expectations of a 3.6% increase and accelerating from an upwardly revised 1.5% gain in Q3. This marked the second consecutive quarterly rise and the fastest growth since Q4 2022, pointing to improved operating conditions toward the end of the year.

Profit growth strengthened in mining (8.1% vs 2.7%), wholesale trade (6.5% vs 2.6%), and accommodation and food services (6.1% vs 2.8%), likely underpinned by firmer commodity prices and resilient consumer spending. Profits also rebounded in manufacturing (2.5% vs -1.1%) and in professional, scientific and technical services (8.8% vs -4.8%).

Retail trade was unchanged (vs -0.1%), while administrative and support services stalled (vs 4.7%). At the same time, profit gains moderated in utilities (0.3% vs 6.0%), financial and insurance services (4.0% vs 5.8%), and rental and hiring services (3.2% vs 3.5%).

On an annual basis, corporate profits increased 3.8%, up from 1.0% in Q3, registering the strongest yearly growth since Q1 2023.